FOLLOWING its filing for bankruptcy in October 2015, American Apparel continued to suffer from weak sales and growing losses. Despite a relative improvement in the third quarter, sales in the first nine months of its fiscal year slumped by 15 per cent against the same period a year earlier, to USD 384.7m. The loss for the period reached USD 64.53m against USD 40.8m a year earlier. In the third quarter, sales declined by USD 29m against the same period in 2014, to USD 126,05m, causing the net loss to grow by 2.19 per cent to USD 18.76m. The disappointing performance is attributed to exchange rate fluctuations, closure of stores and a reduced volume of sales per m2 as a result of lower inventories.
As the troubled chain intensifies its efforts to cut costs, with a negative impact on sales volume, it appears that things are likely to get worse before prospects begin to improve.